Impact of Care Delivery Variation on Costs

Impact of Care Delivery Variation on Costs


A study conducted by an advisory board from April 2014-March 2017 focused on 468 hospitals best practices in healthcare and found that high-quality hospitals deliver lower cost care for approximately 82% of the diagnoses by reducing care visitation. This reduction resulted in better outcomes, such as lower complication rates. The analysis found that hospitals spend up to 30% more to deliver care with comparable or lower quality outcomes.

In 2019 a study published in the in Journal of the American Medical Association (JAMA) regarding cost associated with “domain of waste” within the healthcare system in 2012 to 2019 and found that the topmost areas of waste were in reference to failure of care deliveries and failure of care coordination which was due to unnecessary admissions, readmissions and avoidable complications amounting to an estimated waste from 27.2 billion to 78.2 billion. Failures of care delivery and poor execution of standardized processes resulted in annual losses ranging from 102.04 billion to 165.7 billion.

Another category of wasteful spending found in the study was administrative complexity caused by lack of standardized regulatory and reimbursement forms and procedures resulting in needlessly complex and time -consuming work for clinicians and staff that resulted in less time spent providing patient care. It is also well documented that those inefficiencies caused by care variations have also contributed to lower rates of patient’s safety and satisfaction. More recent studies convey that clinicians time spent online documenting electronic health records and quality metrics have led to high burnout rates which is associated with increasing medical errors.

Multiple interventions have been identified to reduce care variation which include standardized clinical pathways that help reduce over utilization of resources, care initiatives that promote coordinated, interdisciplinary care and performance metrics that incentivize reducing complications and hospital readmissions.

It is important that hospitals have a command center approach to provide digital centralized monitoring capabilities that combine real-time data analytics with operational services to enhance coordination, quality and efficiency in patient care. To make operations more streamlined:

  • Provide vigilance
  • Improve staff productivity
  • Workflow design
  • Care team collaboration

PETTIGREW Medical has an extensive compliance plan and full- suite platform that can provide support and streamline your processes and claim management, so your staff make fewer mistakes with labor empowered industry-leading processes and customized technology solutions.

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